One reason for the collapse of the Bretton Woods system was

Question

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The U.S. balance of payments deficit was a major factor in the collapse of the Bretton Woods system. Under the system, other countries could exchange their U.S. dollar holdings for gold at a fixed rate, but the U.S. was running large trade deficits and printing more dollars to finance government spending, leading to a depletion of gold reserves and a loss of confidence in the system. This eventually led to the collapse of the fixed exchange rate system in 1971.

One Reason for the Collapse of the Bretton Woods System